If a company has sales of $2,500,000, net income of $250,000, and an asset base of...

Question

Question

If a company has sales of $2,500,000, net income of $250,000, and an asset base of $1,250,000, its return on investment is

a.500%.

b.20%.

c.10%.

d.200%.

business accounting

Answer 1

Answer #1

Answer : B) 20%

Return on investment : Ratio Between the Net income and the average assets invested in the Business

Return on Investment : Net income / Average operating Assets

= $250,000 / $ 1,250,000 = 0.20 , 20% ( Answer)

Answer 2

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